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The Sharpe Ratio and the T-Statistic for the hypothesis that returns are equal to the risk free rate, are closely related (occasionally some people mistakenly think they are the same). In fact: "The t-statistic will equal the Sharpe Ratio times the square root of N (the number of returns used for the calculation)." 1 So it makes sense to show both. Then, ...


The geometric mean of quantities $\{a_1, \dots, a_n\}$ is $$ \bar{a}_g = \left( \prod_{i=1}^n a_i \right)^{1/n} $$ Taking the logarithm of both sides gives $$ \log \bar{a}_g = \frac{1}{n} \sum_{i=1}^n \log a_i $$ so the log of the geometric mean is equal to the arithmetic mean of the logs. In your case, the relevant quantities $a_i$ are the growth rates ...


The 0.5813 is correct. I won't post the formulas here given it is to basic. I am attaching picture with all the numbers you need. If you have a question on how any of those numbers is computed just ask, but should be very straightforward.

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